General Insurance
What characterises a career agency, or captive, distribution system?
Answer and explanation
Answer: B. In a career system the agent represents a single insurer and its affiliates and is trained and supported by it, whereas an independent agent or broker places business among several insurers. An appointment is required in either arrangement.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, marketing and distribution systems
More general insurance questions
- How do stock and mutual insurance companies differ in ownership and distributions?
- How does a warranty differ from a representation in insurance law?
- How does the principle of indemnity apply differently to life insurance than to property insurance?
- In the law of agency as it applies to insurance, who is the principal?
- In the law of agency, what is the relationship between an insurer and its appointed producer?
- Under the law of large numbers, what happens to the reliability of an insurer's loss prediction as the number of similar exposure units grows?
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